The Tactical Intelligence News Brief: California on the Verge of System Failure

by Erich

What is Happening

Although this should come as no surprise to most of my readers, we are seeing more and more evidence that California is hemorrhaging and on the verge of complete collapse. To put it in perspective, they are so far in the hole that it would take freeing 168,000 prison inmates and permanently closing 240 university and community college campuses just to balance its budget in the fiscal year that begins July 1.

California, once the third-largest economy in the world, is becoming the next Greece. The California government has spent so far beyond its means that mass layoffs, a failing infrastructure, and welfare reductions that leave a million children and the poor and elderly without the services they need are now the norm.

Unemployment in some areas of California is at Great Depression levels. In fact, the total number of people unemployed in the state of California is equal to the populations of Nevada, Vermont, and New Hampshire combined.

On top of that, California’s health care system is also on the verge of system failure.  Over the past ten years, dozens of California hospitals and emergency rooms have shut down. Why? They weren’t able to keep up with the endless influx of illegal immigrants, unemployed Californians and homeless people who could not pay for the services that they were receiving.

As a result, the rest of the health care system in California is now completely overloaded and long waits, and even unnecessary patient deaths are becoming commonplace.

To resolve this issue, California policy makers are begging the Federal Government for bailout funds proclaiming that they too are “too big to fail”.

What This Means

As California goes, so goes the nation.

Even if you don’t live in California, this should give you reason to be concerned. California’s economy is very much intertwined with the rest of the nation. If California fails, be prepared to see the rest of the country to soon follow suit.

Besides that point, California is not the only state on the verge of bankruptcy (Florida, New York etc). The whole nation is infected.

We have become entitlement slaves

This once strongly independent and fiercely self-reliant country has turned into a population of entitlement slaves. Too many are dependent upon and expect to continue to be supported by government dole-outs. But this is completely unsustainable as we are seeing.

The system throughout the U.S. (and world) is collapsing and unless we revert back to the principles that founded this country (self-reliance, frugality, industry, faith) we all — not just California — are doomed to follow Greece.

As a side note, I find it ironic that the government of California — an overspending, overpromising, in-debt-up-to-its-eyeballs behemoth — is petitioning to an overspending, over promising, in-debt-up-to-its-eyeballs behemoth for a bailout. There’s something just not right about that.

How Does this Affect You?

If the saying “as California goes, so goes the nation” is true, we are in a world of hurt. For this purpose, if you haven’t yet, you’ll need to get yourselves prepared.

For you newbies who might be overwhelmed and not know where to begin, I’ve written some articles that lay out the process and begin with the basics:

Food & Water Storage and Beyond

Food & water storage should be the first thing you prepare your family with. It’s not just for end-of-the-world emergencies —  it’s pure common sense (ie you lose your job, food prices go through the roof with the devaluation of the currencies etc).

Here is a list of articles that details where to begin and where to go from there:

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Comment by Lisa
2010-06-29 11:38:56

What is even more ironic is that CA is going to BOYCOTT Arizona, a state that is trying desperately to deal with the problem of illegal immigration that is one of the reasons behind California’s mess. To try and figure that out is like trying to figure out one of those Star Trek temporal loop stories.

Comment by Tactical Intelligence
2010-06-30 10:35:44

Yeah, it’s really a mess. Maybe CA should take some pointers from Arizona instead of boycotting them. That’s just plain ridiculous.

Comment by D. Harmon
2010-06-30 15:15:12

Crisis in Confidence. As in 1929, our country still has intelligent workers, economic freedom, capital and so on. But in 1929, and in other crashes, various events may lead to a crisis in confidence, where stockholders and bondholders sell out rapidly, fearing a plunge in value. At the same time, people withdraw their money from banking institutions. The sum of these events crashes the economy. It seems that people 1) lack confidence now because of the recent economic plunge, but may be thrown into a real panic over 2) the national debt, already huge and growing quickly; and over 3) the likely California crash. It is not hysteria to think that these three can generate a greater economic panic than in 1929. Or better yet, perhaps a scary Middle East war, or the Iranians detonating a nuclear weapon, will be the trigger event. Better be ready. This is not science fiction, folks.

Comment by Tactical Intelligence
2010-06-30 19:46:11


Good points. Combine that with a Federal Reserve (which didn’t exist in 1929) who is printing money that is quickly becoming worth less than the paper it’s printed on and backed by nothing (in 1929 it was backed by gold) and you’ve got an economic perfect storm on the horizon.

Comment by Phil
2014-06-22 10:43:37

Not only California, the same thing is happening in the U.K. Immigrants are coming thro E.U. countries to the U.K. because they know they can claim money, houses and free medical care. Lets face it the S has hit the fan in their countries, so where can they turn. If the boot was on the other foot I would do the same. The trouble is people who are criminals, fraudsters. con artists and religeous fanatics (who are allowed to preach hatred in the streets but if you dare question it you are branded racist) are bleeding the system and the U.K. dry . It seems that the only people who do not realise it are the ones in power who let it happen in the first place. They of course are well and truly on the gravy train, just look at the expenses they claim for, and of course they are protected by the police. Rant over stock up and sit tight for the S to HTF BIG STYLE. Take care and look after family and good friends. Phil

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